Olam Group reports Operational PATMI of S$184.0 million for H1 2023

August 11, 2023 (press release) –

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Aims to list Olam Agri by H1 2024, and list ofi on a sequential basis thereafter

Singapore

Olam Group: 

• Lower H1 2023 PATMI of S$47.9 million driven by a one-off exceptional loss on lower almond yields in Australia, and sharply higher interest costs as previously announced

Olam Agri: 

• Strong H1 2023 performance in line with historical phasing of earnings between H1 and H2 but weaker and more normalised against an exceptionally strong performance in H1 2022
• Significant growth in EBIT for the Food & Feed - Processing & Value-added segment on resilient demand in key markets, compensating for the lower year-on-year contributions from Food & Feed - Origination & Merchandising and Fibre, Agri-industrials & Ag Services segments
• The Group is targeting the Olam Agri IPO by H1 2024, subject to all requisite approvals and prevailing market conditions 

ofi:

• Good H1 2023 EBIT performance, excluding the exceptional one-off loss from lower almond yields, led by Ingredients & Solutions as contract re-pricing continues to flow through with anticipated time lag
• Proposed listing on premium segment in London, with a concurrent listing in Singapore, expected to take place after Olam Agri IPO on a sequential basis

Remaining Olam Group: 

• Continued benefits from restructuring; significantly lower losses from a year ago

Interim Dividend: 

• Board declares interim dividend of 3.0 cents per share

H1 2023 Group Financial Highlights

Management Comments on Consolidated Olam Group Performance and Outlook 

Olam Group Co-Founder and CEO, Sunny Verghese, said: “The focused and differentiated strategies of our operating groups will continue to allow us to capture opportunities across the food, feed and ingredients space.

“Olam Agri continues to target a first-of-its kind dual-listing in Singapore and Saudi Arabia by H1 2024, subject to receiving all requisite approvals and prevailing market conditions. ofi, which will list in London and Singapore, will follow suit on a sequential basis based on prevailing market conditions. Concurrently, we are reconfiguring our portfolio for the Remaining Olam Group while investing and developing our future growth engines.

“Each of our three operating groups offers a unique value proposition for investors and our stakeholders while retaining the Olam DNA.”

Olam Group CFO, N Muthukumar, said:  “We have been budgeting for higher interest costs and optimising cost structures overall. We are however not immune to near-term impact from rapid benchmark interest rate hikes affecting companies globally. Some of the higher interest costs will be recovered through an increase in selling prices as we reprice our contracts, putting us in a better position for the second-half.”

Contacts for Olam Investor RelationsContacts for WATATAWA

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